Windsor Mayor Proposes Development Fee Waiver to Boost Apartment Construction
In a strategic move to address housing shortages, Windsor Mayor Drew Dilkens has proposed waiving development fees for new apartment buildings throughout 2026. This initiative aims to incentivize developers to commence construction on multi-unit housing projects that have already received zoning approval but remain stalled due to financial constraints.
Mayoral Decision to Stimulate Housing Development
On March 3, 2026, Mayor Dilkens issued a formal "mayoral decision" directing city staff to explore options for partially or fully exempting development charges for purpose-built rental housing projects that obtain building permits this year. The mayor emphasized that this measure is designed to make apartment construction economically viable for developers who are currently hesitant to proceed.
"Without development charges, it actually makes some of these projects viable," Dilkens stated, highlighting feedback from developers who cite escalating costs of labor, building materials, and development fees as major barriers. He also noted broader economic uncertainties, including trade turbulence with the United States, which have further complicated the financial landscape for new construction.
Understanding Development Charges and Their Impact
Development charges are fees levied by municipalities on developers to fund essential infrastructure and services required for growing communities. These include:
- Roads, sewers, and water lines
- Libraries and public transit systems
- Emergency services such as fire and police
Without these fees, the financial burden would shift to existing taxpayers. However, Dilkens, a proponent of "growth paying for growth," believes that provincial grants will compensate for any lost revenue from the proposed exemptions.
Industry Support and Provincial Funding Prospects
Norbert Bolger, chair of the Windsor Essex Home Builders' Association, praised the mayor's proposal as a "great" move for renters and a "big incentive" for developers. "The less it costs you to build a place, there should be less to charge in rent," Bolger explained, underscoring the potential for more affordable housing options.
Mayor Dilkens expressed confidence that the provincial government will revise its Building Faster Fund, a three-year program that concluded in 2025. Windsor previously received $5.2 million from this fund for exceeding housing targets, and the mayor anticipates additional grants if the city facilitates new apartment construction through fee waivers.
Broader Housing Market Context
The proposal comes amid a challenging housing market. According to the Canada Mortgage and Housing Corporation's 2026 Housing Market Outlook report, housing starts are expected to decline this year due to high economic uncertainty. The report cites:
- Ongoing weakness in ground-oriented and condominium construction
- Ample resale inventory dampening homeownership demand
- Shifting migration patterns affecting market dynamics
By waiving development fees, Windsor aims to counteract these trends and unlock construction on several apartment buildings, thereby addressing both rental housing needs and economic stimulation. The mayor's initiative represents a proactive approach to municipal policy, balancing growth incentives with fiscal responsibility through anticipated provincial support.
